Below are interesting stories the Banking.com staff has been reading over the past week. What have you been reading? Let us know in the comments section below or Tweet @bankingdotcom.
- Major Breaches Could Undermine Consumer Confidence, Experts Warn
Consumers still have faith in payment cards, but Global Payments Inc.’s massive data breach will make life tougher for issuers trying to reassure audiences that all is well. News of the event rippled across mainstream websites over the past weekend, reawakening consumer and industry concerns about the risk to millions when criminals expose sensitive data, says Mike Urban, director of financial crimes solutions at Fiserv. “It’s clear the fraud problem is not going away, and major breaches are not slowing up like we were sort of hoping,” he says, referring to a lull in major data breaches that appeared to be setting in during portions of 2010 and 2011. The payment industry over the past few years has made big strides in protecting data against major breaches after the massive Heartland Payment Systems breach in 2008, Urban notes.
- Mobile Banking Users Cite Lack of Tech Support as Biggest Void
A recent survey of 1,527 mobile banking users found a gaping void in the typical mobile banking application — a lack of technical support, tutorials and advice. Asked about the one improvement they’d most like to see in their mobile banking application, 60% of these consumers said links/contact information for technical support. “This was a strong theme in the responses we got,” says Michael McEvoy, managing director at ath Power Consulting, based in Boston and Washington, D.C., the firm that conducted the survey. “Users feel they’re not getting the kind of mobile banking help and guidance that they’d like to have. Some complained about difficulty navigating the app. Some felt there was a lack of support and guidance to help if you’re not sure what to do next.
- Generation Y Not Yet Business Owners, Baby Boomers Not Yet Retired
Recent research released by the Labor Bureau overwhelmingly shows that both business births and deaths were adversely impacted during the most recent recession. What the Labor Bureau research does not show is who is sitting on the sidelines and how this will impact the future business plans of the small business owner. Although the recession appears to have taken a toll on both ends of the company’s business life cycle, the business owner community is growing older. In 2011, the average small business had been in existence for 26 years, an increase of 4 years when compared to 2001. At 58 years old, the average business owner’s age has also increased six years since 2001.
- US consumer ready to pay for mobile banking services: Study
According to The ath Power 2012 Mobile Banking Study, US consumers have expressed their willingness to pay as much as $11 per month for mobile banking services. ath Power president and CEO Frank Aloi said the revenue potential for banks who add compelling features to their mobile offerings could be significant. “However, it is alarming that only 10 percent of users were prompted to first use their bank’s mobile channel by their actual bank. This indicates a clear lack of customer education, yet an obvious opportunity for banks to take initiative to promote their offerings,” Aloi said. An online survey was conducted over 1,527 mobile banking users to assess their current banking behaviors and present mobile banking experiences.
- Mobility Matters – Tracking the Mobile Banking Revolution: Online Only
Credit Union Mobile Banking Debut of The Week: “We are gearing this to a younger membership. We are ahead of the curve, that’s where we want to be,” said Christopher White, a senior vice president at Waltham, Mass-based RTN FCU, a $720 million institution with 37,000 members. “Members have been asking us for mobile banking and remote deposit capture – we are giving them both. But we are doing more,” said White. That “more” is the interesting bit, as RTN – after looking at various mobile banking solutions – opted to go with Portland, Ore.-based Tyfone’s multi-layered mobile wallet.
- Smart Phones Helping Consumers Manage Their Money
Using a mobile device to access your bank account is not only convenient, but it appears to be helping consumers better manage their finances. A new Federal Reserve study shows that mobile phones and Internet access are in widespread use and changing the way that consumers access their financial services. According to the study, 21 percent of mobile phone owners have used mobile banking in the past twelve months, and an additional 11 percent think they will probably use it within the next year. Two-thirds of mobile banking users say they used their mobile phone to check an account balance or available credit before making a large purchase in the past twelve months.
- First job brings first paycheck; next up, first budget ; It’s never too early to plan for retirement
With your first “big” job comes your first “big” paycheck. But it also comes with the question of what to do with that hard- earned cash. If you take time now to plan when it comes to budgeting and saving, then the credit card you get and even your retirement fund will pay off, literally, in the long run. “Establishing a working budget is critical,” says Vince Shorb, chief marketing officer at the National Financial Educators Council.